If you’ve set yearly financial goals in the past, but have failed to achieve them, now is a great time to re-evaluate your process. And don’t let past failures discourage you, because you are not alone – only 12 percent of consumers reached their financial goals in 2011, according to a recent Zogby IBOPE survey commissioned by TransUnion, one of the three major credit reporting companies.

“Even though you may have been busy with the holidays, now is the perfect time to appraise your current financial situation and make goals for where you want to be at the end of 2012,” says Heather Battison, TransUnion’s senior director responsible for consumer education.

So what can you do to ensure financial success in the coming year? TransUnion offers five tips for planning and achieving your goals:

* Check your credit reports every three months. Monitoring your credit can help you recognize bad financial habits, like making late payments, which can affect credit score. Regularly checking your credit report is also a way to protect yourself against identity theft. If you ever run into a situation where you suspect identity theft, TransUnion provides a guide for what to do next.

Federal regulations allow everyone to receive one free credit report per year from each of the three main credit reporting agencies, Experian, Equifax, and TransUnion.

* Check for accuracy.  Make sure the information on your credit reports is up-to-date and reflects your current credit history. Give yourself at least 30 days to resolve any issues. Online dispute forms are available at TransUnion.com.

* Know your score. Your credit score helps determine your interest rates on credit purchases. A healthier credit score can help you receive the best interest rate, ultimately putting more money in your pocket as your work toward achieving your financial goals.

* Create a monthly spending plan and stick to it. Breaking down your spending habits into smaller and more manageable increments can help you achieve your financial goals. Through breaking it down by month, you can also set aside a fixed amount each month to deal with unexpected financial emergencies that may come up later in the year. If you don’t have to spend this reserve fund, you can treat it as a year-end bonus, or, even better – put it toward next year’s goals.

* Take additional measures to minimize your exposure to identity theft. In addition to frequently checking your credit, you can sign up for a credit monitoring service that will alert you whenever something changes in your report.

Setting yourself up for a successful financial year means developing plans now that you can execute as the year goes on. Additional planning tools to help you understand your credit information, manage your debt load, protect your identity and help you achieve your financial goals can be found TransUnion.com.

The post Tips for Meeting your Financial Goals this Year first appeared on The How Do Gardener.

For most, the approach that allows you to spread cheer without breaking the bank exists somewhere between the two extremes. Using credit during the holidays should be just like using credit at any other time of year. If you do use it, you should use it wisely and avoid overspending.

Using credit can make sense for holiday shopping, especially if you’ll be buying big-ticket items (such as electronics) and could benefit from the extra layer of consumer protection that many credit cards afford. Buying with a credit card can also yield financial rewards; many credit card companies offer incentives such as cash back to encourage credit card use during the holidays.

So, how do you make decisions about credit use that will keep your holiday season bright without putting a damper on your personal credit and cash flow in the months – and possibly years – to come? The credit experts at Experian offer a few tips:

1. Establish a budget – The holidays arrive at the same time every year, and we all have 12 months to plan for them. Give yourself a very early gift, and start your holiday budgeting in January of each year. Decide how much you’ll spend on holiday gifts and how much you’ll need to save each month to accrue that amount by the time the holidays arrive. Set that amount aside in an interest-bearing account.

2. Check your credit – It’s always a good idea to understand your credit and know your score before you make any big credit moves, such as funding your holiday shopping with credit cards. Websites like www.freecreditscore.com make it easy to check your score and learn about how your credit moves may affect your score and your overall financial well-being.

3. Make a list – You’ve got your budget in mind, now it’s time to decide how you’ll use your money. Create a detailed gift list of who you’ll be buying for and what you plan to purchase or spend for each recipient. Having a plan in hand before hitting the mall can help ensure you don’t resort to budget- and credit-busting impulse buys.

4. Keep your credit under control – Although incentives from credit card companies can help save you cash during the holiday season, those incentives may not be a good enough reason to open a new account. Don’t be tempted to open new accounts in order to fund your buying or to get a discount or better deal. Opening too many accounts in a short time frame can negatively impact your credit score. Instead, look for incentives from cards you already have and use.

5. Don’t spend beyond your means – It can be tempting to overspend on credit cards, especially during the holidays, thinking you’re just spreading the cost of your purchases over a few months. Remember, when you buy on credit and take more than a month to pay off the balance, you’re not just spreading out the cost, you’re increasing it. The same holds true for those tempting low-APR promotional checks sent by credit providers. The vast majority of those promotions incur fees, thereby increasing your total purchase price while potentially simultaneously damaging your credit profile. If you can’t afford to pay off your balance in a month or two – and minimize the cost of using credit – then you probably should reconsider how much you’re spending.

Gift giving is one way we show the people in our lives that we care about and appreciate them. By keeping an eye on your credit and making smart credit moves, you can ensure the holidays stay happy for all, including your wallet.

The post Should you Use Credit for Holiday Buying? Yes, No and Maybe first appeared on The How Do Gardener.

Nationally, since 2007, the number of credit card payments that are 60 days or more overdue declined by 20 percent, the study found. In contrast, 25 percent more consumers are paying their mortgages 60 days late.

In 30 of the nation’s largest metropolitan areas, the percentage of late credit card payments decreased significantly, with Cleveland showing the most improvement, Experian reports. Residents of the “Rock and Roll Capital of the World” improved their payment rate by nearly 35 percent between 2007 and 2011.

Mortgage payment rates, however, did not fare as well over the same time period in many metropolitan areas across the country. The percentage of missed mortgage payments (considered to be payments 60 or more days overdue), rose dramatically in 26 regions in the study, and improved in just four.

Portland, Ore., fared the worst, with nearly a 100 percent increase in the number of missed mortgage payments. Phoenix (78.4 percent), Baltimore (66.8 percent), Seattle (65.1 percent) and New York (49.4 percent) rounded out the list of the five cities with the highest increase in missed payments. At the other end of the spectrum, the number of late mortgage payments actually declined in Cleveland, Minneapolis, Denver and Detroit.

“In looking at the numbers, we’re seeing that even in the cities at the bottom of the list, consumers are meeting their bankcard payment obligations better than before the recession,” says Michele Raneri, vice president of analytics, Experian. “While the Experian data shows an overall improvement to these 60-day delinquencies, as much as a 30 percent improvement is seen in the key Texas cities, which is a positive sign in what has been a slow economic recovery.”  

While the trend is positive on the bankcard side, the mortgage side is continuing to suffer in most of the markets. Delinquent payments and collections can have a major negative impact on a credit score and a consumer’s ability to obtain credit.  

Experian offers these tips for consumers to consider regarding payment behavior:

* Make sure your payments are current, and do not let them be late again. The longer your history of on-time payments, the less impact the delinquencies will have on your creditworthiness.

* If you miss a payment on an individual account, that payment may impact your ability to open joint accounts because both credit histories will be considered.

For more information on managing credit, visit www.experian.com/credit-education/credit-information.html.

The post Americans Paying Credit Cards on Time, but Lag on Mortgages first appeared on The How Do Gardener.